Helmerich & Payne (HP): Valuation Perspectives After Goldman Upgrade and Saudi Rig Restart

Helmerich & Payne (HP) has drawn fresh attention after Goldman Sachs upgraded its outlook. The company also announced plans to resume operations on several rigs in Saudi Arabia. These moves highlight a shifting landscape for the drilling firm.

See our latest analysis for Helmerich & Payne.

After a tough year marked by a decline of 16.1% in total shareholder return, Helmerich & Payne’s stock is showing signs of renewed investor interest. The share price has rebounded 39.5% over the past 90 days, suggesting market momentum may be building as the company brings more rigs online and adapts its strategy in key regions.

If news of drilling expansion has you watching industry trends, this could be the perfect moment to discover fast growing stocks with high insider ownership

The question now is whether Helmerich & Payne’s rebound signals an undervalued opportunity for investors, or if the current optimism has already been reflected in its share price and future growth prospects.

Most Popular Narrative: 15% Overvalued

Helmerich & Payne’s fair value according to the most widely followed narrative sits below its last closing price, setting a cautious tone for investors. This view emerges as growth expectations shift and valuation signals are weighed against softer near-term projections.

The analysts have a consensus price target of $21.312 for Helmerich & Payne based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement among analysts, with the most bullish reporting a price target of $27.0, and the most bearish reporting a price target of just $17.0.

Read the complete narrative.

Curious what’s driving this market disconnect? There is a complex mix of forecasted profit improvements and revenue shifts underlying the narrative’s calculation, but the full story hides a surprising assumption. Uncover the projection that could rewrite expectations for HP’s next phase.

Result: Fair Value of $24 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, increased overcapacity and Helmerich & Payne’s heavy reliance on U.S. shale could quickly challenge even these cautiously optimistic projections.

Find out about the key risks to this Helmerich & Payne narrative.

Another View: SWS DCF Model Suggests Opportunity

Looking from a different angle, our DCF model paints a far more optimistic picture. It estimates a fair value of $60.66 per share for Helmerich & Payne, which makes the current market price appear deeply undervalued. Why is there such a big gap? Are growth expectations more resilient than analysts believe, or does uncertainty keep the market cautious?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Helmerich & Payne Narrative

If you have your own take on Helmerich & Payne’s story, or want to dig into the numbers yourself, you can build your own perspective and share it in just a few minutes. Do it your way

A great starting point for your Helmerich & Payne research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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